Question 1

Forms HO-3 and HO-5 are typically not designed for single-family homes.

Accepted Answer

A) True 
 B)False  False

Question 2

An insurance policy which fixes the insurance company's liability to the insured to the actual cash value of the insured property is said to provide

Accepted Answer

A)  "old for new" coverage. 
B)  "new for old" coverage. 
C)  "old for old" coverage. 
D)  "new for new" coverage. 
A)  "old for new" coverage. 
B)  "new for old" coverage. 
C)  "old for old" coverage. 
D)  "new for new" coverage. C

Question 3

Choose the one most appropriate answer for each.
-describes a policy that covers all perils, except those excluded in writing

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy A

Question 4

The lender on a condominium unit will require proof that the

Accepted Answer

A)  unit owner carries liability insurance. 
B)  unit owner carries contents insurance. 
C)  condominium association carries insurance on the common elements. 
D)  condominium association carries insurance on the individual owner's contents. 
A)  unit owner carries liability insurance. 
B)  unit owner carries contents insurance. 
C)  condominium association carries insurance on the common elements. 
D)  condominium association carries insurance on the individual owner's contents.

Question 5

There are no exclusions in an all-risks policy.

Accepted Answer

A) True 
 B)False

Question 6

When a property is mortgaged to a lending institution, the lender will usually require the owner to provide

Accepted Answer

A)  fire and extended coverage on structures. 
B)  personal property coverage. 
C)  medical payment coverage. 
D)  liability coverage. 
A)  fire and extended coverage on structures. 
B)  personal property coverage. 
C)  medical payment coverage. 
D)  liability coverage.

Question 7

The liability coverage of a homeowner policy

Accepted Answer

A)  applies to the insured premises. 
B)  provides protection away from the premises. 
C)  both a and b. 
D)  neither a nor b. 
A)  applies to the insured premises. 
B)  provides protection away from the premises. 
C)  both a and b. 
D)  neither a nor b.

Question 8

Choose the one most appropriate answer for each.
-insurance coverage for injuries incurred by an employee on the job

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 9

The owner of a rented property may insure that property by obtaining

Accepted Answer

A)  an endorsement to an existing homeowner policy. 
B)  a landlord package policy. 
C)  both a and b. 
D)  neither a nor b. 
A)  an endorsement to an existing homeowner policy. 
B)  a landlord package policy. 
C)  both a and b. 
D)  neither a nor b.

Question 10

A homeowner policy is a policy that combines property and liability policies designed for residential owner-occupants.

Accepted Answer

A) True 
 B)False

Question 11

As an owner of real estate, one is exposed to losses by

Accepted Answer

A)  damage to the property. 
B)  other persons being injured on the property. 
C)  both a and b. 
D)  neither a nor b. 
A)  damage to the property. 
B)  other persons being injured on the property. 
C)  both a and b. 
D)  neither a nor b.

Question 12

If the face amount of the homeowner's policy is less than 80% of replacement cost, the ____________________ equals the insurance carried divided by 80% of today's replacement cost times today's cost to replace the damaged portion.

Accepted Answer

The answer of If the face amount of the homeowner's...

Question 13

Choose the one most appropriate answer for each.
-an endorsement that periodically increases insurance coverage

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 14

Lenders on real estate mortgages may require that the borrower provide

Accepted Answer

A)  a replacement cost policy on the full amount of the loan. 
B)  insurance in an amount equal to the purchase price of the property. 
C)  inflation guard coverage. 
D)  content coverage. 
A)  a replacement cost policy on the full amount of the loan. 
B)  insurance in an amount equal to the purchase price of the property. 
C)  inflation guard coverage. 
D)  content coverage.

Question 15

Choose the one most appropriate answer for each.
-pays cost of replacing damaged property at current prices

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 16

Choose the one most appropriate answer for each.
-describes combined property and liability policies designed for residential owner-occupants

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 17

Choose the one most appropriate answer for each.
-tenant's policy form

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 18

An "all-risk" homeowner policy (HO-C)does not include coverage for damage resulting from war or nuclear accident.

Accepted Answer

A) True 
 B)False

Question 19

Medical payments coverage provides payment regardless of who is at fault.

Accepted Answer

A) True 
 B)False

Question 20

An insurer may suspend an insurance policy if the property is left vacant beyond a specified time.

Accepted Answer

A) True 
 B)False

Exam 23: Property Insurance

Forms HO-3 and HO-5 are typically not designed for single-family homes.

An insurance policy which fixes the insurance company's liability to the insured to the actual cash value of the insured property is said to provide

Choose the one most appropriate answer for each. -describes a policy that covers all perils, except those excluded in writing

The lender on a condominium unit will require proof that the

There are no exclusions in an all-risks policy.

When a property is mortgaged to a lending institution, the lender will usually require the owner to provide

The liability coverage of a homeowner policy

Choose the one most appropriate answer for each. -insurance coverage for injuries incurred by an employee on the job

The owner of a rented property may insure that property by obtaining

A homeowner policy is a policy that combines property and liability policies designed for residential owner-occupants.

As an owner of real estate, one is exposed to losses by

If the face amount of the homeowner's policy is less than 80% of replacement cost, the ____________________ equals the insurance carried divided by 80% of today's replacement cost times today's cost to replace the damaged portion.

Choose the one most appropriate answer for each. -an endorsement that periodically increases insurance coverage

Lenders on real estate mortgages may require that the borrower provide

Choose the one most appropriate answer for each. -pays cost of replacing damaged property at current prices

Choose the one most appropriate answer for each. -describes combined property and liability policies designed for residential owner-occupants

Choose the one most appropriate answer for each. -tenant's policy form

An "all-risk" homeowner policy (HO-C)does not include coverage for damage resulting from war or nuclear accident.

Medical payments coverage provides payment regardless of who is at fault.

An insurer may suspend an insurance policy if the property is left vacant beyond a specified time.

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

Filters